2019 (9) TMI 1280 - HC - GST

Detention of goods alongwith vehicle - In the detention order, the said Officer has stated that the driver as well as the authorised person is not present. - It was submitted that the detention of the goods of the petitioner which were being transported duly in accordance with law and were accompanied by a valid invoice and e-way bill is without authority of law - HELD THAT - Issue Notice returnable on 30th September, 2019.

Summary

Issues involved:
Detention of goods under section 129(1) of the Central Goods and Services Tax Act, 2017 based on verification of goods and absence of driver or authorized persons - Confiscation of goods under section 130 of the CGST Act - Validity of detention and confiscation orders.

Analysis:

Issue 1: Detention of goods under section 129(1) of the Central Goods and Services Tax Act, 2017
The petitioner's advocate highlighted discrepancies between Form GST MOV-01, which contained the driver's statement and goods particulars, and the subsequent detention order issued by the second respondent. The detention order cited grounds of verifying goods' genuineness and absence of the driver or authorized persons. The petitioner argued that the detention, occurring after the issuance of Form GST MOV-01, lacked legal basis. Additionally, the petitioner pointed out that a notice under section 130 of the CGST Act was issued for confiscating goods based on similar grounds, including the non-existence of the recipient's place. The petitioner contended that the detention of goods, transported lawfully with valid documentation, was unauthorized.

Issue 2: Confiscation of goods under section 130 of the CGST Act
The petitioner informed the authority that the recipient's existence was confirmed despite initial misunderstandings, supported by an order of seizure at the recipient's premises. The petitioner argued that the confiscation grounds, including the non-existence of the recipient's place, were unfounded. The detention and subsequent confiscation attempts were challenged as lacking legal authority due to the lawful transportation of goods with proper documentation.

Conclusion:
The High Court, after considering the submissions made by the petitioner's advocate, issued a notice returnable on 30th September 2019, with the case to be listed at the top of the Board. Direct service was permitted on the same day. The issues raised regarding the detention and confiscation of goods under the CGST Act were acknowledged, and further legal proceedings were initiated to address the validity of the detention and confiscation orders.